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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (80015)	7/11/2001 9:01:26 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 99985

The current burn rate (not taking special charges, and there might be more if history is a guide), the $100 MM you mentioned, will last for three quarters. At least, that is what the market s thinking. It is the same story with EXDS, when a company starts and get into financial troubles, customers desert and in drove. It never occurred to you that the CEO might very well be "talking up" the stock in order to avoid the mass desertion of its clients. When sales drop from $100 MM to less than $30 MM in a space of three quarters, something is definitely wrong, and only heroic efforts will salvage such a downtrend, once more, if history is a guide. How can you say that the burn rate is "only $25 MM" per quarter when your own citing of the CEO points to cash in the June quarter going from $160 MM to around $110 MM ( in my book, $50 MM burn of cash in one quarter)? On what accounting planet do you live? And don't give me this CEO speak of "Non recurring" stuff, this will be the third quarter in a row of "non recurring" losses. Have you asked your brother how come he no longer work there? Zeev